July 2025

News from DHS archive

On Medicaid's 60th anniversary, Governor highlights impacts of federal health care cuts

On July 30, Governor Tim Walz visited a hospital in Maplewood to discuss the anticipated impacts that federal Medicaid cuts will have on health care for Minnesotans, particularly in Greater Minnesota.

July 30 marked the 60th anniversary of the signing of Medicaid and Medicare into law by President Lyndon B. Johnson. Governor Walz proclaimed July 30, 2025 as Medicaid and Medicare Day (PDF) in Minnesota.

State budget officials estimate over 140,000 Minnesotans will lose health insurance, and health care funding reductions are expected to cost the state over $1 billion in the first four years of the bill’s enactment.

“For 60 years, Medicaid has helped Minnesotans live longer, healthier lives - it’s a lifeline for hospitals and clinics across our state,” said Governor Walz. “Minnesota will do what we’ve always done: protect access to care, support our providers, and fight for the dignity and health of every Minnesotan - no matter their ZIP code or income." But changes at the federal level have made that work much more difficult.

The federal reconciliation bill passed in early July includes sweeping changes to Medicaid that could:

• Result in the loss of health care coverage for 140,000 Minnesotans
• Cut an estimated $1.1 billion in funding for Minnesota’s health care system
• Increase out-of-pocket costs for enrollees while straining hospitals and county government with higher administrative burdens.

Read the full summary of the bill's greater impact on Minnesotans (PDF). 

DHS shared a high-level overview (PDF) and in-depth summary (PDF) of its preliminary analysis of the bill's impacts specifically on Medicaid. 

Direct support professionals: We need your input

The state of Minnesota is conducting a survey to learn more about direct support professionals to better understand and improve working conditions for this labor market. The survey takes just a few minutes to complete. The survey is available until 5 p.m. Friday, Aug. 29. Direct support is critical work provided by people with many different titles, such as home health aides, personal care assistants, nursing home aides and others. They help people with disabilities and older adults with activities of daily living like eating, dressing and using the bathroom. If you know someone who does this important work, please encourage them to take the survey.

In social media: DCYF launches Facebook page

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Opioid fight continues with $15 million in new grants

New state grants will build on Minnesota’s recent progress in addressing opioid abuse.

Grants totaling $15 million will expand services for people suffering from opioid use disorder and make it easier to get help.

DHS will award grants to 23 organizations recommended by the Opioid Epidemic Response Advisory Council.

This funding follows several encouraging developments in the fight against opioid abuse.

In 2023, for the third year in a row, more people went to treatment for opioid use disorder treatment, according to the Minnesota Department of Health’s Drug Overdose Dashboard. Also in 2023, fatal overdoses caused by opioids dropped for the first time in five years. The decline was particularly notable in rural Minnesota.

“While these signs of progress are encouraging, the opioid crisis continues to touch every corner of our state,” said Temporary Human Services Commissioner Shireen Gandhi. “There is still much work to do."

Learn more in a department news release.

Cultural and ethnic communities council seeks new members

In the news

Walz, state officials say federal Medicaid cuts will heap billions in costs on Minnesota in long term: On the 60th anniversary of President Lyndon B. Johnson signing Medicaid into law, Gov. Tim Walz is sounding the alarm on how federal budget cuts could impact Minnesotans. Learn more in a KAAL-TV story.

140,000 Minnesotans could lose health care coverage over federal Medicaid cuts, state says: DHS said Minnesota will also lose nearly $1.5 billion in federal funds over the first four years of implementation of the federal reconciliation bill. People not on Medicaid could see higher health care costs, too, said Minnesota Medicaid Director John Connolly. Learn more in a WCCO-TV story.

Walz: No need for another special session despite federal Medicaid cuts: Governor Tim Walz is working with DHS as well as the state’s 87 counties (which directly administer Medicaid eligibility) on setting up a work verification system. But this logistics work is not expected to require legislative action until February, when lawmakers are next set to intervene. Learn more in a MinnPost article.

The paperwork dilemma: Will Medicaid work requirements cause people to lose their health care just because they don’t fill out forms? At least 320,000 Minnesotans would likely be subject to work reporting requirement rules, or about 23% of the state’s Medicaid population, according to a DHS fact sheet. Learn more in a MinnPost article.